Initiating the reorganization procedure according to the law on bankruptcy: Reorganization vs. prepackaged reorganization plan

Abstract

This paper discusses the initiation of the reorganization procedure by comparing the initiation of the "classic" type of reorganization and the initiation of the reorganization in accordance with the prepackaged reorganization plan. The analysis of the initiation of these two types of reorganization will be conducted based on an overview of the three elements most important for the initiation of the reorganization procedure within one legal system; namely, when the reorganization procedure is initiated, who is authorized to initiate this procedure and what the mandatory content of the reorganization plan is. The way in which these three elements are arranged can significantly affect the quality of the reorganization plan and its successful implementation. The aim of this paper is to analyze the initiation of two types of reorganization in the Serbian Law on Bankruptcy by comparing these three elements, as well as to point out some controversial issues that arise when initiating these two proceedings.